STRATEGY AND ANALYSIS |
G4-1 |
Statement from most senior decision-maker. |
CEO Message |
G4-2 |
Key impacts, risks and opportunities. |
CEO Message and Our Report |
ORGANIZATIONAL PROFILE |
G4-3 |
Name of the organization. |
Denbury Resources Inc. |
G4-4 |
Primary brands, products and services. |
2014 Annual Report on Form 10-K: Item 1. Business and Properties |
G4-5 |
Location of the organization’s headquarters. |
5320 Legacy Dr. Plano, Texas, 75024 |
G4-6 |
Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. |
1 country; United States of America See also, “Our Company—What We Do & Our CO2 Story” for our operational map. |
G4-7 |
Nature of ownership and legal form. |
Delaware corporation |
G4-8 |
Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). |
2014 Annual Report on Form 10-K: Item 1. Business and Properties |
G4-9 |
Scale of organization. |
2014 Annual Report on Form 10-K:
- Item 1. Business and Properties
- Consolidated Financial Statements |
G4-10 |
Total workforce by (i) employment type (full-time and part-time) and gender and (ii) region and gender. |
See charts below |
2014 Employment Type & Gender
Employment Type |
Male |
Female |
Total |
Full-time employees |
1,173 |
345 |
1,518 |
Part-time employees |
3 |
2 |
5 |
Total Employees |
1,176 |
347 |
1,523 |
2013 Employment Type & Gender
Employment Type |
Male |
Female |
Total |
Full-time employees |
1,154 |
345 |
1,499 |
Part-time employees |
1 |
1 |
2 |
Total Employees |
1,155 |
346 |
1,501 |
2014 Region & Gender
Region |
Male |
Female |
Total |
Rocky Mountain (WY, MT, ND) |
211 |
23 |
234 |
Gulf Coast (TX, LA, MS, AL) |
542 |
37 |
579 |
Headquarters (Plano, TX) |
423 |
287 |
710 |
Total Employees |
1,176 |
347 |
1,523 |
2013 Region & Gender
Region |
Male |
Female |
Total |
Rocky Mountain (WY, MT, ND) |
197 |
20 |
217 |
Gulf Coast (TX, LA, MS, AL) |
550 |
40 |
590 |
Headquarters (Plano, TX) |
408 |
286 |
694 |
Total Employees |
1,155 |
346 |
1,501 |
All data as of December 31, 2014 and December 31, 2013.
|
G4-11 |
Percentage of total employees covered by collective bargaining agreements. |
0% |
G4-12 |
Describe the organization’s supply chain. |
Denbury’s supply chain is comprised of thousands of suppliers and independent contractors, ranging from multinational corporations to local businesses, who provide Denbury with products, materials and services integral to our business. Our supply chain department consists of procurement professionals at our corporate headquarters and in certain field offices who seek an ethical, diverse and highly distributed supply chain to reduce costs and procure high quality products and services. In 2013 and 2014, Denbury spent approximately $1.2 billion and $1.7 billion, respectively, in procurement with its suppliers and independent contractors. |
G4-13 |
Report significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain. |
2014 Annual Report on Form 10-K:
- Item 1. Business and Properties
- Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
G4-14 |
Report whether and how the precautionary approach or principle is addressed by the organization. |
Not addressed by the organization |
G4-15 |
Report externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses. |
None |
G4-16 |
Report memberships in associations (such as industry associations) and national or international advocacy organizations in which the organization:
* Has positions in governance bodies;
* Participates in projects or committees;
* Provides substantive funding beyond routine membership dues; or
* Views membership as strategic. |
We are members and hold governance positions in a few organization and institutions in the oil and gas sector or related to professional fields. See below for a selection of current positions.
Greg Schnacke, Executive Director, Governmental Relations:
• Board of Directors for the Montana Petroleum Association
• Board of Directors for the Wyoming Petroleum Association
• Board of Directors for the North American Carbon Capture and Storage Association
Bruce Smith, Director A&D Land and Special Projects:
• Secretary/Treasurer of the Louisiana Oil and Gas Association
|
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES |
G4-17 |
List all entities included in the organization’s consolidated financial statements or equivalent documents and whether any of these entities is not covered by the report. |
2014 Annual Report on Form 10-K: Exhibit 21. Contains a list of our significant subsidiaries. Data in this Report includes all of our subsidiaries unless otherwise noted. |
G4-18 |
Explain the process for defining the report content and the Aspect Boundaries and how the organization has implemented the Reporting Principles for Defining Report Content. |
Our Report—Report Content and Report Framework |
G4-19 |
List all the material Aspects identified in the process for defining report content. |
Our Report—Report Content |
G4-20 |
For each material Aspect, report the Aspect Boundary and whether the aspect is material within the organization. |
See chart below G4-21 |
G4-21 |
For each material Aspect, report the Aspect Boundary and whether the Aspect is material outside the organization. |
See chart below |
Denbury Material Issue |
G4 Category |
G4 Material Aspect |
Material Within Denbury |
Material Outside Denbury |
Relevance Outside Denbury |
Economic Investments & Impacts |
Economic |
Economic Performance (EC1) |
✓ |
✓ |
The economic value we generate and distribute impacts not only our financials but also state and local governments, our capital providers, our employees and our communities. |
Economic |
Indirect Economic Impacts (EC8) |
|
✓ |
Our operations reinvigorate local labor markets, businesses and the economies of our communities while generating millions of positive dollars of tax revenue and other economic activities. |
Reserves |
Economic |
Reserves (OG1) |
✓ |
|
|
Employee Well-being |
Social; Labor Practices and Decent Work |
Employment (LA1 & LA2) |
✓ |
|
|
Employee Health & Safety |
Social; Labor Practices and Decent Work |
Occupational Health and Safety (LA5 & LA6) |
✓ |
|
|
Employee Training & Development |
Social; Labor Practices and Decent Work |
Training and Education (LA9 & LA11) |
✓ |
✓ |
Training and developing employees not only contributes to Denbury’s long-term success but also the success and quality of the current and future global workplace. |
Employee Diversity & Equal Opportunity |
Social; Labor Practices and Decent Work |
Diversity and Equal Opportunity (LA12) |
✓ |
|
|
Managing our Carbon Footprint |
Environmental |
Emissions (EN15, EN16 & EN18) |
|
✓ |
Carbon emissions reduction is an important issue to many Denbury stakeholders and this material Aspect is relevant in all our areas of operations, as part of our commitment to environmental stewardship. |
Spill Prevention |
Environmental |
Effluents and Waste (EN24) |
✓ |
✓ |
Spills have the potential to adversely affect the communities in which they occur and the environment, therefore, we continue to strive to eliminate all environmental incidents. |
|
G4-22 |
Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. |
Not applicable |
G4-23 |
Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. |
None |
STAKEHOLDER ENGAGEMENT |
G4-24 |
List stakeholder groups engaged by the organization. |
The primary stakeholders with whom we engaged are: Denbury employees, Denbury’s senior management, Denbury’s Board of Directors, shareholders (including institutional and retail investors), prospective investors and local community organizations. |
G4-25 |
The basis for identification and selection of stakeholders with whom to engage. |
The organization encourages an open dialogue with all stakeholders. We consider stakeholder engagement a necessary part of good business and corporate governance practices. Management uses its judgment to determine the stakeholder groups with whom to engage. We respond diligently to all stakeholders that contact us and believe that engagement with our employees is always necessary. |
G4-26 |
The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. |
The organization’s approach to stakeholder engagement is an ongoing and constant process.
See also, G4-25 and “Our Report—Report Framework” for more information. |
G4-27 |
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. The Stakeholder groups that raised each of the key topics and concerns. |
The key topics and concerns that have been raised through stakeholder engagement are the material Aspects identified in this Report. Our stakeholders were relatively consistent in the identification of key topics and concerns. See also, “Our Report—Report Content” |
REPORT PROFILE |
G4-28 |
Reporting period for information provided. |
2013 and 2014. 2015 data is included where relevant and helpful. |
G4-29 |
Date of most recent previous report (if any). |
Our 2014 report was released in January of 2015. |
G4-30 |
Reporting cycle. |
At least biennially |
G4-31 |
The contact point for questions regarding the report or its contents. |
Please send an email to Denbury’s Corporate Responsibility Team at responsibility@denbury.com. |
G4-32 |
Report the “in accordance” option the organization has chosen; and the reference to the External Assurance Report, if the report has been externally assured. |
“In accordance” – Core has been chosen by the organization.
Our report has not been externally assured. |
G4-33 |
Report the organization’s policy and current practice with regard to seeking external assurance for the report. |
The organization does not have a policy with respect to externally assuring the content in this Report. However, internally we conduct a diligent fact check on the information and data presented. Our consolidated financial statements are audited by our independent public accounting firm.See 2014 Annual Report on Form 10-K. |
GOVERNANCE |
G4-34 |
Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. |
Our Company—Corporate Governance and 2015 Proxy Statement pp. 9-16 |
G4-35 |
Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees. |
The business, properties and affairs of the organization are managed by the Chief Executive Officer under the direction of the Board of Directors. The Board of Directors has responsibility for establishing broad corporate policies and for the overall performance and direction of the Company, which includes economic, environmental and social topics. |
G4-36 |
Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body. |
Our senior management team is responsible for overseeing economic, environmental and social topics that impact our business and our stakeholders. While senior management reports to our CEO, our senior management team also has direct interaction with our Board of Directors on these matters. |
G4-37 |
Report the processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body. |
The Board of Directors has approved a process by which stakeholders may contact the members of the Board of Directors regarding economic, environmental and social topics of concern. Please write to Denbury Resources Inc., Attention Corporate Secretary, 5320 Legacy Drive, Plano Texas 75024. In addition, stakeholders may email the Corporate Secretary and Board members at: secretary@denbury.com. |
G4-38 |
Report the composition of the highest governance body and its committees by: executive or non-executive; independence; tenure on the governance body; number of each individual’s other significant positions and commitments, and the nature of the commitments; gender; membership of under-represented social groups; competences relating to economic, environmental and social impacts; and stakeholder representation. |
2015 Proxy Statement pp. 3-8 (Director Information); 2015 Proxy Statement p. 11 (Director Independence) |
G4-39 |
Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement). |
Denbury’s Chairman of the Board is not an executive officer. See also, 2015 Proxy Statement p. 9 (Board Leadership Structure) and “Our Company—Corporate Governance.” |
G4-40 |
Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members. |
2015 Proxy Statement pp. 10-11 (Identification of Director Candidates); 2015 Proxy Statement p. 69 (Stockholders Proposals for our 2016 Annual Meeting of Stockholders) |
G4-41 |
Report the processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders. |
Related party transactions are monitored and approved by our Nominating/Corporate Governance Committee pursuant to Denbury’s Related Party Transaction Policy. The Company discloses such transactions as required pursuant to the Securities and Exchange Commission’s Rules and Regulations. Additionally, Denbury’s Code of Conduct and Ethics governs conflicts of interest. Waivers to the Code of Conduct and Ethics are disclosed to the extent and in the manner required by applicable laws, rules (including any rule of any applicable stock exchange) or regulations. |
G4-42 |
Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts. |
The business, properties and affairs of the organization are managed by the Chief Executive Officer under the direction of the Board of Directors. The Board of Directors has responsibility for establishing broad corporate policies and for the overall performance and direction of the Company, which includes economic, environmental and social topics. |
G4-46 |
The highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics. |
The Board of Directors has an oversight role with respect to the risk management processes for many economic, environmental and social topics. In certain instances the Board has delegated this duty to an appropriate Board Committee. For example, Denbury’s Reserves and Health, Safety and Environmental Committee has an oversight role with respect to the risk management process for environmental matters; and the Compensation Committee has an oversight role with respect to the risk management process for compensation-related matters. |
G4-47 |
The frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities. |
As necessary throughout the year. |
G4-48 |
The highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered. |
Reserves and Health, Safety and Environmental Committee of the Board of Directors. |
G4-49 |
The process for communicating critical concerns to the highest governance body. |
All stakeholders wishing to communicate with the Board are encouraged to email the corporate secretary and Board members or address letters to the following addresses: Denbury Resources Inc., Attn: Corporate Secretary, 5320 Legacy Drive, Plano, TX 75024. You may also send an email to: secretary@denbury.com. Additionally, see G4-58. |
G4-51 |
a. The remuneration policies for the highest governance body and senior executives.b. How performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives. |
2015 Proxy Statement “Executive Compensation—Compensation Discussion and Analysis,” p. 22.
2015 Proxy Statement “Compensation of Directors,” p. 55. |
G4-52 |
The process for determining remuneration.Whether remuneration consultants are involved in determining remuneration and whether they are independent of management.Report any other relationships which the remuneration consultants have with the organization. |
2015 Proxy Statement “Roles in Setting Executive Officer Compensation,” p. 28. |
G4-53 |
How stakeholders’ views are sought and taken into account regarding the remuneration, including the results of votes on remuneration policies and proposals, if applicable. |
2015 Proxy Statement “Advisory Vote to Approve Named Executive Officer Compensation,” p. 54. |
ETHICS AND INTEGRITY |
G4-56 |
The organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. |
See Details |
G4-57 |
The internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines. |
Internally, employees are expected to first bring matters of concern to their manager. If there are reasons one is uncomfortable doing so or thinks the issue needs attention from a different perspective, employees may turn to any of the following: (1) a manager or the vice president of the employee’s department or region, (2) a Human resource employee relations representative, or (3) Denbury’s Compliance team or Legal department. Internally and externally, parties may use our Compliance Hotline as described in G4-58 below. |
G4-58 |
The internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines. |
Denbury has a Compliance Hotline that is managed by an independent, third-party provider and is available 24 hours a day/7 days a week via phone (1-844-DOING-RT (364-6478)) or online (www.doingright.denbury.com). All reports submitted to the Compliance Hotline will be appropriately investigated and, as applicable, reported to the Audit Committee of the Denbury Board of Directors. See Details |